PROJECT REPORT

Of

KURKURE MAKING

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Kurkure Making Unit

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 KURKURE MAKING

INTRODUCTION
Kurkure is a brand of corn puffs, the product launched in 1999 and
since then transformed the way of Indian snacks. Named after the Hindi
word for “crunchy”. The snack comes in many flavours.Thissnack was
developed entirely in India.

This imperfect shaped snack gives the perfect taste to the

consumers.

Ingredients
Kurkure is made from corn meal, rice meal, edible vegetable oil (palm
oil), gram meal, spices, condiments, salt, sugar, tartaric, milk solids.
Also, it contains flavour (natural and nature identical flavouring
substances).

Flavours
In India Kurkure is available in the following flavours

 Masala Munch
 Green Chutney
 Chilli Chatka
 Malabar Masala Style
 Masala Twists (Solid Masti)
 Desi Beats
 Naughty Tomato
 Puffcorn (Yummy Cheese)
 Monster Paws
 Hyderabadi Hungama
 Lemon pickle
 Zig Zag
 Puff Corn
 Corn Cups
 Solid Masti
 Butter Masti
 Kurkure triangles
 Multigrain
Besides these flavours Kurkure is also made in other varieties of
flavours in various occasions like in Puja, Diwali etc.

Description of Kurkure Making Machine

Kurkure Making Machines are used to produce Kurkure from the corn
flour. With the help of this machine the work of Mixing, Grinding, heating
and packaging completes in a very short span.An extra remote for
handling the device is attached in the machine, so that one can control its
speed while operating the machine.

Feature of Kurkure making machine:

 Continues cooking food extruder.

 The main structure is made by mild steel tube frame with feeding
screw.
 Screw and barrels are made of alloy steel.
 All standard fitting

Kurkure Current Market Analysis

Kurkure price starts from Rs 5 per packet- which is the lowest entry price
point-accounts for a majority of sales for its wider accessibility among
consumers and retailersspecially in urban market due to increased
spending by the consumer on snacks.
In today’s competitive market Kurkure are sold by many participants
which are Haldiram Foods, Balaji wafers, ITC, Parle etc. Domestic
market of Kurkure is also increasing rapidly.

Kurkure Making Manufacturing Process

The extrusion process is the base for Kurkure production process. The
fully automatic production process begins with the procurement of raw
material: Cornmeal, spice mix masala seasonings. The procurement of
raw material depends on the quality parameters set by the producer.
Production begins by blending meal i.e. corn with an addition of water.

Machinery &Equipment’s required:

Cost of Kurkure Making Machine – 3,50,000 + GST

Input of machine 25-28 Kg/perHour depends upon material & filter.

Land &Building required:

Land required 250-300 Square Feet (approx.)

Approximate rent for the same is5000-6000 per Month.

Labour Requirement:

3-4 Manpower are required for the Kurkure Making process.

Includes:

1-2 skilled Labour

2Unskilled Labour

Break Even Point:

Break-even point of the machine =2,28,317 Packets

Company should operate at minimum 13% of Production capacity to

cover its costs (variable + Fixed)
Raw Material Requirement of Kurkure Making Machine

Corn is required as raw material for the production of Kurkure.

Corn(cost per KG) =Rs.60-70

Kurkure Business license &registration

For proprietor
 Obtain the GST registration.
 Fire/ Pollution Registration as required.
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(in Months)
1 Acquisition Of premises 1
2 Construction (if Applicable) 1- 2 Months
3 Procurement & installation of Plant & Machinery 1
4 Arrangement of Finance 1
5 Requirement of required Manpower 1
Total time Required (some activities shall run 3 - 4 Months
concurrently)

Conclusion:
After completion of manufacturing process, product is ready to sell in the
market. Kurkure & puffs are lite in weight & tastes good for the snacks.
This machine can be installed with low investment & one can earn a
good Margin of profit by doing this business.
 Technical Process Flow Chart

Kurkure Making Machine Process

Mixing of Raw Material

Give time to Heat the system

Pouring of Raw Material into the hopper

Grinding of Material

Control the arms of machine to maintain the proper

ration of consumption

Kurkure Formation Starts

Add Spices

Collection & packaging

Delivery of Goods
 PROJECT AT GLANCE
Term Loan of Rs. 3.56 Lacs and Working Capital limit of Rs. 2.00 Lacs

COST OF PROJECT PARTICULARS AMOUNT AMOUNT AMOUNT

Land
Building Civil Work
Plant & Machinery 4.25 1.06 3.19
Furniture & Fixtures and Other Assets 0.50 0.13 0.38
Margin for Working Capital 2.67 0.67 2.00

Total 7.42 1.86 5.56

MEANS OF FINANCE PARTICULARS AMOUNT

Own Contribution 1.86
Bank Loan 3.56
Working capital limit 2.00
Total 7.42
COMPUTATION OF PRODUCTION OF KURKURE

Items to be Manufactured
Packet weight 20gm

Manufacturing Capacity (INPUT) 25 kg Per hour

wastage 40% of input
Output 15 kg per hour
ouput per day 120
output per annum 36,000
total raw material required per annum 60,000 kg
packets per kg 30
total packets per annum 1,800,000 packets

Year Capacity Qty

Utilisation

1st year 30% 18,000

2nd year 35% 21,000

3rd year 40% 24,000

4th year 45% 27,000

5th year 48% 28,800

6th year 50% 30,000

CALULATION OF CONSUMPTION OF RAW MATERIAL

Item Name At Capacity Quantity of Raw Material

Raw Material 100% 60,000

Raw Material
Consumed Capacity Rate per Kg Amount
Utilisation (Rs. in lacs)

1st year 30% 65.00 11.70

2nd year 35% 66.95 14.06

3rd year 40% 68.96 16.55

4th year 45% 71.03 19.18

5th year 48% 73.16 21.07

6th year 50% 75.35 22.61

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year 6th year

packets per annum 540,000 630,000 720,000 810,000 864,000 900,000

Op Stock - 27,000 25,200 28,800 32,400 34,560

Production 540,000 630,000 720,000 810,000 864,000 900,000

Less : Closing
Stock 27,000 25,200 28,800 32,400 34,560 36,000

Net Sale 513,000 631,800 716,400 806,400 861,840 898,560

Sale Price Per
packet 5.00 5.15 5.30 5.46 5.63 5.80

Sale (in Lacs) 25.65 32.54 38.00 44.06 48.50 52.08

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Per
Month Employees Salary

skilled 18,000.00 1 18,000.00

unskilled 12,000.00 2 24,000.00

Total Salary Per Month 42,000.00

Total Annual Labour Charges (in Lacs) 5.04

BREAK UP OF SALARY

Particulars Salary No of Total

Per
Month Employees Salary

Accountant 12,000.00 1 12,000.00

Other helper 7,000.00 1 7,000.00

Total Salary Per Month 19,000.00

Total Annual Salary (in Lacs) 2.28

PROJECTED PROFITABILITY STATEMENT

2nd 6th
PARTICULARS 1st year year 3rd year 4th year 5th year year
Capacity Utilisation % 30% 35% 40% 45% 48% 50%
SALES
Gross Sale 25.65 32.54 38.00 44.06 48.50 52.08
Total 25.65 32.54 38.00 44.06 48.50 52.08
COST OF SALES
Raw Mateiral Consumed 11.70 14.06 16.55 19.18 21.07 22.61
Elecricity Expenses 0.50 0.55 0.61 0.67 0.74 0.81
Repair & Maintenance 0.72 0.76 0.79 0.83 0.88 0.92
Labour & Wages 5.04 5.54 6.10 7.01 7.71 7.71
Depriciation 0.69 0.59 0.50 0.43 0.37 0.31
Consumables & others 1.80 2.28 2.66 3.08 3.40 3.65
Cost of Production 20.45 23.78 27.21 31.21 34.16 36.01
Add: Opening Stock /WIP - 1.02 0.95 1.09 1.25 1.37
Less: Closing Stock /WIP 1.02 0.95 1.09 1.25 1.37 1.44
Cost of Sales 19.42 23.85 27.08 31.05 34.04 35.94
GROSS PROFIT 6.23 8.69 10.93 13.01 14.46 16.15
Gross Profit % 24% 27% 29% 30% 30% 31%

Salary to Staff 2.28 2.51 2.76 3.03 3.34 3.67

Interest on Term Loan 0.35 0.27 0.13 0.02 - -
Interest on working Capital 0.22 0.22 0.22 0.22 0.22 0.22
Rent 0.60 0.66 0.73 0.80 0.88 0.97
Selling & Adm Expenses Exp. 1.28 2.51 3.80 5.29 5.92 6.67
TOTAL 4.73 6.16 7.64 9.36 10.35 11.53
NET PROFIT 1.50 2.53 3.29 3.65 4.11 4.62
Taxation - - - - - -
PROFIT (After Tax) 1.50 2.53 3.29 3.65 4.11 4.62
PROJECTED BALANCE SHEET

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year
Liabilities
capital
opening balance 2.36 3.39 4.93 6.58 6.69
Add:-Addition 1.86
Add:-Retained Profit 1.50 2.53 3.29 3.65 4.11 4.62
Less:- Drawings 1.00 1.50 1.75 2.00 4.00 5.00
Closing Balnace 2.36 3.39 4.93 6.58 6.69 6.31

Term Loan 2.96 1.76 0.56 - - -

Working Capital 2.00 2.00 2.00 2.00 2.00 2.00
Sundry Creditors 0.20 0.23 0.28 0.32 0.35 0.38
Provisions & Other Liab 0.50 0.80 1.15 1.27 1.39 1.53
TOTAL : 8.01 8.18 8.91 10.16 10.43 10.22

Assets
Fixed Assets ( Gross) 4.75 4.75 4.75 4.75 4.75 4.75
Gross Dep. 0.69 1.27 1.77 2.20 2.57 2.88
Net Fixed Assets 4.06 3.47 2.97 2.55 2.18 1.87

Current Assets
Sundry Debtors 1.28 1.52 1.90 2.20 2.43 2.60
Stock in Hand 1.61 1.65 1.92 2.21 2.42 2.57
Cash and Bank 1.06 1.54 2.12 3.21 3.41 3.18
TOTAL : 8.01 8.18 8.91 10.17 10.43 10.22
PROJECTED CASH FLOW STATEMENT

2nd 3rd
PARTICULARS 1st year year year 4th year 5th year 6th year
SOURCES OF FUND
Own Margin 1.86 - - -
Net Profit 1.50 2.53 3.29 3.65 4.11 4.62
Depriciation & Exp. W/off 0.69 0.59 0.50 0.43 0.37 0.31
Increase in Cash Credit 2.00 - - - - -
Increase In Term Loan 3.56 - - - - -
Increase in Creditors 0.20 0.04 0.04 0.04 0.03 0.03
Increase in Provisions & Oth lib 0.50 0.30 0.35 0.12 0.13 0.14
TOTAL : 10.30 3.46 4.18 4.24 4.63 5.10

APPLICATION OF FUND
Increase in Fixed Assets 4.75
Increase in Stock 1.61 0.05 0.26 0.29 0.21 0.15
Increase in Debtors 1.28 0.24 0.38 0.30 0.22 0.18
Repayment of Term Loan 0.60 1.20 1.20 0.56 - -
Drawings 1.00 1.50 1.75 2.00 4.00 5.00
Taxation - - - - - -
TOTAL : 9.24 2.98 3.59 3.15 4.43 5.33

Opening Cash & Bank Balance - 1.06 1.54 2.12 3.21 3.41
-
Add : Surplus 1.06 0.47 0.59 1.09 0.20 0.23
Closing Cash & Bank Balance 1.06 1.54 2.12 3.21 3.41 3.18
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
6th
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year year
Finished Goods
(15 Days requirement) 1.02 0.95 1.09 1.25 1.37 1.44
Raw Material
( 15 days requirement) 0.59 0.70 0.83 0.96 1.05 1.13
Closing Stock 1.61 1.65 1.92 2.21 2.42 2.57

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 1.61
Stock
Less : Creditors 0.20
Paid stock 1.41 25% 0.35 75% 1.06
Sundry Debtors 1.28 25% 0.32 75% 0.96
2.69 0.67 2.02

WORKING CAPITAL LIMIT DEMAND ( from Bank)

2.00
2nd Method

PARTICULARS 1st year 2nd year

Total Current Assets 3.95 4.71

Other Current Liabilities 0.70 1.03

Working Capital Gap 3.26 3.68

Min Working Capital

25% of WCG 0.81 0.92

1.26 1.68
Actual NWC
item III - IV 2.44 2.76

item III - V 2.00 2.00

MPBF (Lower of VI & VII) 2.00 2.00

3rd Method

PARTICULARS 1st year 2nd year

Total Current Assets 3.95 4.71

Other Current Liabilities 0.70 1.03

Working Capital Gap 3.26 3.68

Min Working Capital

25% of Current Assets 0.99 1.18

Actual NWC 1.26 1.68

item III - IV 2.27 2.50

item III - V 2.00 2.00

MPBF (Lower of VI & VII) 2.00 2.00

COMPUTATION OF DEPRECIATION

Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%
Opening Balance - - -
Addition 4.25 0.50 4.75
Total 4.25 0.50 4.75
Less : Depreciation 0.64 0.05 0.69
WDV at end of Year 3.61 0.45 4.06
Additions During The Year - - -
Total 3.61 0.45 4.06
Less : Depreciation 0.54 0.05 0.59
WDV at end of Year 3.07 0.41 3.47
Additions During The Year - - -
Total 3.07 0.41 3.47
Less : Depreciation 0.46 0.04 0.50
WDV at end of Year 2.61 0.36 2.97
Additions During The Year - - -
Total 2.61 0.36 2.97
Less : Depreciation 0.39 0.04 0.43
WDV at end of Year 2.22 0.33 2.55
Additions During The Year - - -
Total 2.22 0.33 2.55
Less : Depreciation 0.33 0.03 0.37
WDV at end of Year 1.88 0.30 2.18
Additions During The Year - - -
Total 1.88 0.30 2.18
Less : Depreciation 0.28 0.03 0.31
WDV at end of Year 1.60 0.27 1.87
Less : Depreciation 0.24 0.03 0.27
WDV at end of Year 1.36 0.24 1.60
Less : Depreciation 0.20 0.02 0.23
WDV at end of Year 1.16 0.22 1.37
 REPAYMENT SCHEDULE OF TERM LOAN
Intt. 11.00%
Cl
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance

Apr-19 - 3.56 3.56 - - 3.56

May-19 3.56 - 3.56 0.03 - 3.56
Jun-19 3.56 - 3.56 0.03 - 3.56
Jul-19 3.56 - 3.56 0.03 - 3.56
Aug-19 3.56 - 3.56 0.03 - 3.56
Sep-19 3.56 - 3.56 0.03 - 3.56
Oct-19 3.56 - 3.56 0.03 0.10 3.46
Nov-19 3.46 - 3.46 0.03 0.10 3.36
Dec-19 3.36 - 3.36 0.03 0.10 3.26
Jan-20 3.26 - 3.26 0.03 0.10 3.16
Feb-20 3.16 - 3.16 0.03 0.10 3.06
Mar-20 3.06 - 3.06 0.03 0.10 2.96

0.35 0.60
2nd Opening Balance

Apr-20 2.96 - 2.96 0.03 0.10 2.86

May-20 2.86 - 2.86 0.03 0.10 2.76
Jun-20 2.76 - 2.76 0.03 0.10 2.66
Jul-20 2.66 - 2.66 0.02 0.10 2.56
Aug-20 2.56 - 2.56 0.02 0.10 2.46
Sep-20 2.46 - 2.46 0.02 0.10 2.36
Oct-20 2.36 - 2.36 0.02 0.10 2.26
Nov-20 2.26 - 2.26 0.02 0.10 2.16
Dec-20 2.16 - 2.16 0.02 0.10 2.06
Jan-21 2.06 - 2.06 0.02 0.10 1.96
Feb-21 1.96 - 1.96 0.02 0.10 1.86
Mar-21 1.86 - 1.86 0.02 0.10 1.76
0.27 1.20
3rd Opening Balance

Apr-21 1.76 - 1.76 0.02 0.10 1.66

May-21 1.66 - 1.66 0.02 0.10 1.56
Jun-21 1.56 - 1.56 0.01 0.10 1.46
Jul-21 1.46 - 1.46 0.01 0.10 1.36
Aug-21 1.36 - 1.36 0.01 0.10 1.26
Sep-21 1.26 - 1.26 0.01 0.10 1.16
Oct-21 1.16 - 1.16 0.01 0.10 1.06
Nov-21 1.06 - 1.06 0.01 0.10 0.96
Dec-21 0.96 - 0.96 0.01 0.10 0.86
Jan-22 0.86 - 0.86 0.01 0.10 0.76
Feb-22 0.76 - 0.76 0.01 0.10 0.66
Mar-22 0.66 - 0.66 0.01 0.10 0.56
0.13 1.20
4th Opening Balance
 Apr-22 0.56 - 0.56 0.01 0.10 0.46
May-22 0.46 - 0.46 0.00 0.10 0.36
Jun-22 0.36 - 0.36 0.00 0.10 0.26
Jul-22 0.26 - 0.26 0.00 0.10 0.16
Aug-22 0.16 - 0.16 0.00 0.10 0.06
Sep-22 0.06 - 0.06 0.00 0.06 0.00

0.02 0.56

DOOR TO DOOR 42 MONTHS

MORATORIUM
PERIOD 6 MONTHS
REPAYMENT
PERIOD 36 MONTHS
CALCULATION OF D.S.C.R

1st 3rd
PARTICULARS year 2nd year year 4th year

CASH ACCRUALS 2.19 3.12 3.79 4.08

Interest on Term Loan 0.35 0.27 0.13 0.02

Total 2.53 3.38 3.92 4.10

REPAYMENT

Instalment of Term Loan 0.60 1.20 1.20 0.56

Interest on Term Loan 0.35 0.27 0.13 0.02

Total 0.95 1.47 1.33 0.58

DEBT SERVICE COVERAGE RATIO 2.68 2.31 2.94 7.10

AVERAGE D.S.C.R. 3.76

BREAK EVEN POINT ANALYSIS

Year I II III IV V VI

Net Sales & Other Income 25.65 32.54 38.00 44.06 48.50 52.08
Less : Opening Stock 0.00 1.02 0.95 1.09 1.25 1.37
Add : Closing Stock 1.02 0.95 1.09 1.25 1.37 1.44

Total Sales 26.67 32.47 38.14 44.22 48.62 52.15

Variable & Semi Variable Exp.

Raw Material Consumed 11.70 14.06 16.55 19.18 21.07 22.61

Electricity Exp/Coal Consumption at 85% 0.43 0.47 0.52 0.57 0.63 0.69
Repair & Maintenance 0.72 0.76 0.79 0.83 0.88 0.92
Wages 5.04 5.54 6.10 7.01 7.71 7.71
Consumables 1.80 2.28 2.66 3.08 3.40 3.65
Interest on Working Capital 0.22 0.22 0.22 0.22 0.22 0.22
Selling & adminstrative Expenses 80% 1.02 2.01 3.04 4.23 4.74 5.34
Total Variable & Semi Variable Exp 20.93 25.34 29.88 35.12 38.65 41.13

Contribution 5.74 7.13 8.26 9.10 9.98 11.02

Fixed & Semi Fixed Expenses

Rent 0.6 0.66 0.73 0.8 0.88 0.97
Electricity Exp/Coal Consumption at 15% 0.08 0.08 0.09 0.10 0.11 0.12
Salary 2.28 2.51 2.76 3.03 3.34 3.67
Depreciation 0.69 0.59 0.50 0.43 0.37 0.31
Interest on Term Loan 0.35 0.27 0.13 0.02 0.00 0.00
Selling & adminstrative Expenses 20% 0.27 0.50 0.76 1.06 1.18 1.33
Total Fixed Expenses 4.26 4.61 4.97 5.44 5.89 6.41

Capacity Utilization 30% 35% 40% 45% 48% 50%

OPERATING PROFIT 1.48 2.52 3.29 3.66 4.09 4.61
BREAK EVEN POINT 22% 23% 24% 27% 28% 29%
BREAK EVEN SALES 19.79 21.00 22.95 26.43 28.68 30.33
 DISCLAIMER

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which are drawn from various research material sources from internet, experts, suppliers and
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to case basis considering specific requirement of the project, capacity and type of plant and
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